The Shocking Truth: Understanding ACA-Related Premium Changes Is...Complicated!
- Changes coming in 2014 to health insurance premiums stemming from the Affordable Care Act (ACA) will reflect several factors and could vary considerably, according to the American Academy of Actuaries’ new issue brief, How Will Premiums Change Under the ACA? Factors affecting premium changes include: effectiveness of the mandate, plan generosity requirements, employer responses, differences from current state rules, and individual risk characteristics. Read the news release. Policymakers and regulators are encouraged to attend a May 17 Hill briefing to learn more.
Actuaries in the News
- Academy President Cecil Bykerk explained that actuaries provide services that are “vital” to their clients and also serve the public interest, and that being an actuary is “extremely rewarding” in a special section on Science, Technology, Engineering, and Mathematics Education included in the May 8 edition of The Washington Post.
- Academy Senior Health Fellow Cori Uccello previewed the Academy’s new issue brief, How Will Premiums Change Under the ACA, in a HealthAffairs.com blog. “The natural temptation will be to simply compare the 2014 premiums to those in 2013 to determine how the ACA may have affected premiums beyond any usual changes due to rising medical spending,” wrote Uccello. “But such comparisons will mask not only the reasons for any premium changes, but also how premium changes will differ across states and individuals.”
- Are you up to date with the latest health care reform activities? Read May’s HealthCheck now.
Opportunities to Learn
- June 4, Regulatory Issues for Small Insurance Companies Webinar: Don’t miss this webinar if you are an actuary who works with regulators. You’ll gain a better understanding of regulators’ perspectives on a variety of topics, including how actuaries can adapt to the new risk-focused exams, whether PBR makes sense for most small companies, how ORSA will help small insurance companies, and more!
- Nov. 11–14, Life and Health Qualifications Seminar: It’s not too early to register for the 2013 Life and Health Qualifications Seminar, Nov. 11–14, 2013. Seats are limited and fill up quickly so don’t delay! This seminar is the primary source of instruction for actuaries seeking qualification to issue actuarial opinions for either the NAIC Life and A&H Annual Statement or the NAIC Health Annual Statement but who may not have met the specific knowledge requirements set forth in the U.S. Qualification Standards.
New Public Policy Activities
- The Modeling Efficiency Work Group released a report that analyzes survey results on the modeling efficiency techniques among U.S. life insurers in 2012. The report was sent to the NAIC’s Life Actuarial Task Force this week.
- The Department of Labor announced it is developing two lifetime income rules relating to the pension benefit statements required of defined contribution plans. Log in to read the full alert.
- The Joint Committee on Taxation released a report that provides an overview of the Internal Revenue Code, suggestions for reform that were submitted by the public to the House Ways and Means Committee Tax Reform Working Groups, and a selection of proposals to reform the tax code. Log in to read the full alert.
News from the Actuarial Standards Board
- The ASB approved the exposure draft, Life Settlements Mortality, which provides guidance to actuaries performing professional services when reporting on, analyzing, evaluating, or using mortality assumptions with respect to life settlements. Deadline to submit your comments to the ASB is July 31, 2013.
- The May Boxscore is chock-full of news items on the adoption of the revised Introduction (now ASOP No. 1); approval of the second exposure draft of ASOP No. 6, Measuring Retiree Group Benefit Obligations; approval of a standing ERM Committee; and more!
ABCD Proposes Revisions to Its Rules of Procedure
- The Actuarial Board for Counseling and Discipline is seeking comments and suggestions regarding its proposed revisions to the ABCD Rules of Procedure. An exposure draft of the proposed revisions can be found on the ABCD website. Deadline to submit your comments to the ABCD is June 30, 2013.
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